Ian Mausner- 5 Things Your Kids Need You To Teach Them About Money!
As a kid my parents taught me many things about life, love and the importance of family. One lesson that stands out in my mind is the value of hard work and saving your money says Ian Mausner. Now that my kids are learning the value of spending versus saving, it’s time to teach them about money.
Here are five things my kids need me to teach them about money:
1. How to save.
As parents, our children are watching our every move. If you use credit cards, they understand this is how money works. However, if your actions are showing your kids the value of saving money for things they want or need in their lives, they will learn from you. It’s not being cheap by saving up for what you need or want; it’s setting a good example that saving is important and something everyone should do.
2. How to earn money.
You don’t have to pay your child an allowance but giving them an opportunity to earn some of the things they desire teaches them about earning versus simply spending all their hard earned cash on toys or candy. My son has been dolling up cars and trucks and selling them to his dad for a quarter says Ian Mausner. Some of these toys have been well loved from being in grandpa’s truck so he can’t sell them back to the store, but by allowing him to earn money buying and selling his own toys he is developing a work ethic at a very early age.
3. How to spend their money wisely.
If your kids have an unlimited amount of cash, they will never learn how it feels to want something bad enough that they are willing to save up in order to get it. The challenge in life comes when we want things that cost more than what we have in our pocket or bank account right now. By teaching your children about spending wisely you set them up with the tools needed to be successful in life.
4. The difference between a want and a need.
If your kids are young you may not feel they need to know the difference between a want and a need but as they get older, it’s important to instill this value in them early so they understand how impulse buying can ruin their credit if they aren’t careful with money. If you have children, instill within them the belief that needs include food, shelter and clothing while wants include electronics, entertainment and toys…things that won’t keep them warm at night or feed them when they’re hungry! The more you teach your kids about needs versus wants during their early years, the less likely they will be driven by material things once they become adults explains Ian Mausner.
5. How to make a budget and stick to it!
By teaching your kids about making a budget – how much you earn, how much you save and what you spend – from an early age will help them become responsible adults who can effectively manage their own money. Some families don’t want their children touching the family bank accounts because they fear they may not be able to resist temptation when faced with unlimited cash…and I agree.
One of the best ways to teach kids about money is to not give them too much of it. If they want something, they have to save up for it. This teaches them that everything costs money, whether that’s a new toy or going out with friends. Allow your children an allowance and use this as a chance to review how you budget as a family.
My parents had me do chores around the house so I could learn about savings. My first job was babysitting at age 9 and I always got paid in cash on the spot! Looking back, this helped prepare me for life as an adult.
Even though Mommy and Daddy might be great savers, teaching kids about credit cards is very important too! If you allow your kids to use a credit card, make sure they understand that they need to pay it off. This will open up a great opportunity for parents and their children to learn about interest rates and the real cost of borrowing money.
Conclusion:
Even though the subject of money can be a touchy one, it’s important to instill good financial lessons within your children says Ian Mausner. By talking about needs and wants – and allowing them to earn, save and spend their own money – you will set your kids up for a bright future.